HB785 - SCHOOL FUND DEPOSITARIES - Lograsso, Don
HB785 CHANGES METHOD OF DETERMINING A SCHOOL DISTRICT'S BANK.
Sponsor: Lograsso, Don (54) Effective Date:00/00/00
CoSponsor:Ross, Carson (55) LR Number:1756-01
Last Action: COMMITTEE: EDUCATION - ELEMENTARY AND SECONDARY
HB785
Next Hearing:Hearing not scheduled
Calendar:Bill currently not on calendar
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Available Bill Summaries for HB785
| Committee | Introduced |


Available Bill Text for HB785
| Introduced |

Available Fiscal Notes for HB785
| Introduced |

BILL SUMMARIES

COMMITTEE

HB 785 -- SCHOOL FUND DEPOSITARIES

CO-SPONSORS:  Lograsso, Ross

COMMITTEE ACTION:  Voted "do pass" by the Committee on
Education-Elementary and Secondary by a vote of 18 to 1.

This bill permits either annual selection of, or a 1- to 5-year
contract for, depositaries for school funds in seven-director
districts.  Current law requires selection in odd-numbered
years, except that urban districts are permitted to select
depositaries annually.  Bidders for depositary services are
permitted to specify the method by which interest will be
determined as an alternative to the current requirement that
bidders specify the interest rate.

Currently, it is a misdemeanor to disclose bid amounts before
depositaries are selected; the bill changes this provision to
prohibit disclosure before bids are opened at public meeting.
As bids are opened, they will be read out loud and documented;
after clarification of bids, they will be entered on the school
board records. Depositary statements are required on the fifth
rather than the first of the month.

FISCAL NOTE:  No impact on state funds.

PROPONENTS:  Supporters say that the current depositary bid
process used by 7 member districts requires a lot of employee
time.  The bill provides the option of going to a 1- to 5-year
contract, which could reduce the amount of time spent overseeing
the bid process.  Also, the current procedure contains a gap,
during which the opener of the bid must not communicate its
contents, making it difficult to clear up questions about bids.
The bill corrects that problem. The depositary bid process for
urban and metropolitan districts is not affected by this bill.

Testifying for the bill were Representative Lograsso;
Cooperating School Districts of Greater Kansas City; and School
Administrators Coalition.

OPPONENTS:  No opposition to the bill was voiced to the
committee.

Becky DeNeve, Research Analyst


INTRODUCED

HB 785 -- School Fund Depositaries

Co-Sponsors:  Lograsso, Ross

This bill permits either annual selection of, or a 1- to 5-year
contract for, depositaries for school funds in seven-director
districts.  Current law requires selection in odd-numbered
years, except that urban districts are permitted to select
depositaries annually.  Bidders for depositary services are
permitted to specify the method by which interest will be
determined as an alternative to the current requirement that
bidders specify the interest rate.

Currently, it is a misdemeanor to disclose bid amounts before
depositaries are selected; the bill changes this provision to
prohibit disclosure before bids are opened at public meeting.
As bids are opened, they will be read out loud and documented;
after clarification of bids, they will be entered on the school
board records. Depositary statements are required on the fifth
rather than the first of the month.


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